Risk perceptions of individuals living in single-parent households during the COVID-19 crisis: examining the mediating and moderating role of income

Abstract

The COVID-19 crisis had severe social and economic impact on the life of most citizens around the globe. Individuals living in single-parent households were particularly at risk, revealing detrimental labour market outcomes and assessments of future perspectives marked by worries. As it has not been investigated yet, in this paper we study, how their perception about the future and their outlook on how the pandemic will affect them is related to their objective economic resources. Against this background, we examine the subjective risk perception of worsening living standards of individuals living in single-parent households compared to other household types, their objective economic situation based on the logarithmised equivalised disposable household incomes and analyse the relationship between those indicators. Using the German SOEP, including the SOEP-CoV survey from 2020, our findings based on regression modelling reveal that individuals living in single-parent households have been worse off during the pandemic, facing high economic insecurity. Path and interaction models support our assumption that the association between those indicators may not be that straightforward, as there are underlying mechanisms–such as mediation and moderation–of income affecting its direction and strength. With respect to our central hypotheses, our empirical findings point toward (1) a mediation effect, by demonstrating that the subjective risk perception of single-parent households can be partly explained by economic conditions. (2) The moderating effect suggests that the concrete position at the income distribution of households matters as well. While at the lower end of the income distribution, single-parent households reveal particularly worse risk perceptions during the pandemic, at the high end of the income spectrum, risk perceptions are similar for all household types. Thus, individuals living in single-parent households do not perceive higher risks of worsening living standards due to their household situation per se, but rather because they are worse off in terms of their economic situation compared to individuals living in other household types.